Volkswagen really wants Americans to buy more of its cars and SUVs. With a complicated--not to mention fascinating--company history that dates back to the 1930s, German-made Volkswagens first appeared on the American market in 1949. From a mere two “Bugs” sold in ‘49, U.S. sales of the VW “Beetle” eclipsed 50,000 units by 1957 and peaked at more than 390,000 in 1968. So, did Americans buy so many Bugs because they were German, or because the car fit their needs? Or was it a bit of both?

Today the brand’s best-selling model in the States is the compact Jetta sedan. For the 2011 model year, it was redesigned with a definite eye on the American consumer. The Jetta became a larger car with a lower starting price. At the same time, it lost some of the previous model’s near-premium interior features and switched to a less-sophisticated rear suspension. Lots of car reviewers griped, but buyers have responded enthusiastically to the new Jetta. Year to date, Jetta sedan sales are up nearly 69 percent.

More Information 2012 Volkswagen Passat Review and Prices Volkswagen's American Factory 2011 Volkswagen Jetta Review and Prices All New Volkswagen Reviews Midsize Car Buying Guide

Now Volkswagen has redesigned its Passat to better suit the expectations of midsize sedan buyers in America. The previous Passat was the top seller in its class in Germany, but was a bit player in the States. Product planners decided that the new Passat sold in North America would have to differ significantly from the model sold in Europe. Again the formula for the U.S. is a larger car with a lower base price. Not discounting Volkswagen’s heritage, Passat’s “accessible” German engineering is also looked at as a strong product differentiator. So, will buyers like the new Passat as much as the Jetta? To Volkswagen, that’s a billion-dollar question.

America’s 2012 Passat is built in Chattanooga, Tennessee, in a brand new factory located on a site that formerly housed a World War II ammunition plant. Jettas sold worldwide are built in Mexico, but the Passats made in Chattanooga will primarily be sold in North America. One reason for building the cars in the U.S. is to avoid problems with currency valuations. Now the U.S. Dollar is weak relative to the Euro used in Germany, making German imports expensive in the U.S. Expensive might not be much of a problem for fancy watches and luxury cars, but it’s not a desirable quality in America’s extremely competitive midsize-sedan market.

Tennessee-built Passats are said to have high North American parts content to avoid foreign-exchange rate problems as much as possible. This alone should help Volkswagen price the new car more competitively. Where the last Passat started at approximately $27,000, the new one is said to start “around” $20,000. Final pricing was not available at the time of this writing, but the least-expensive Passat will be the base “S” model with VW’s 2.5-liter 5-cylinder engine and a 5-speed manual transmission.
 
The Chattanooga factory is a critical piece in Volkswagen’s ambitious plan to sell 800,000 cars annually in the U.S. by 2018. In 2010, the company sold 256,830, so that goal is a long way off. Executives hint another product may be in the Chattanooga plant’s future, but they aren’t giving many clues. Speculation seems to be focusing on a Passat-based three-row crossover SUV similar in concept to the Honda Pilot or Ford Explorer. Again, time will tell.

So most importantly, what’s the 2012 Passat like on the road? Volkswagen invited Consumer Guide to tour the Chattanooga plant and spend some quality time behind the wheel of two different pre-production Passats on a drive to Nashville. Here are a few of my first impressions.